Love Financiers. Hate Workers.

Henry Paulson, US Treasury Secretary and ex-merchant banker, has said he will not use the $700bn rescue fund to help the car manufacturers General Motors and Chrysler who have gone to Washington to seek aid. The aid is question is of the order of $25bn, and relative to the overall budget, not a huge amount. Especially when you consider that they employ 250,000 workers directly, with possibly millions more dependent on the industry. While Paulson and Bush say they want to help out the car makers, they want the funds to come from a different source. I am sure that neither the Republicans nor the Democrats will allow these giant companies to collapse due to the electoral cost. Michigan after all is a key swing state in Presidential elections but this shows the real nature of the bailout. It is aimed to support finance capital and white collar employees, at the expense of the taxpayer and working class people. We didn’t really need another reminder, but we got one anyway.

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2 Responses to “Love Financiers. Hate Workers.”

  1. Jim Monaghan Says:

    Just an extra point. Would not direct aid to an industry break GATT etc. agreements and maybe trigger similar actions in other countries.

  2. Garibaldy Says:

    I think it probably would Jim, but as we can see the rules have been turfed out the window for the banks. I would hope that governments would do the same to secure the jobs of workers as opposed to the superprofits of speculators.

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